Equipment Leasing
870-336-0676
Through our sister company, Wagon Leasing, we are able offer equipment leasing. Our program is a simple lease-to-own program with a flat monthly payment. We do not charge monthly maintenance or percentage-of-load fees like some other companies in the industry.
​
Through our affiliation, monthly payments can be setup through your reserve account. This provides greater simplicity and allows Wagon Leasing more flexibility in approvals.
Wagon Leasing offers two leasing programs for your equipment needs. To determine the one that is right for you, we must look at the type of equipment, the length of time you intend to use the equipment, and whether or not you wish to purchase the equipment at the end of the lease.
True Lease / Operating Lease
​
-
The lease term is typically shorter
-
At the end of the lease, the equipment is returned to the lessor or may be purchased at “Fair Market Value.
-
Lease payments are expensed
TRAC Lease (Terminal Rental Adjustment Clause)
​
-
Used only for motor vehicles and trailers
-
At the end of the lease, the equipment may be purchased for a predetermined amount (Trac Value or Projected Value). If not purchased, both lessee and lessor share in the residual sale of the equipment.
-
Lease payments are expensed
​
​
Benefits of Leasing
​
Potential Tax Savings
100% of the payments may be written-off during the “Term of the Lease”
Avoids Capital Outlay
Lenders will often require 20-25% down-payment for loans. Leases are 100% financing. Most lessors require the first and last payment at closing. This is generally far less than the down-payment for a loan.
Removes Debt From the Balance Sheet
Leases are not loans. If properly structured, leases are not shown on the balance sheet as debt.
Preserves Bank Credit Lines
Many lenders have loan agreements which limit the amount of debt a company may incur, debt/equity requirements, or debt-service-coverage requirements. Equipment leasing is one way to get the equipment you need while adhering to loan agreement covenants.
​
​